Gift Card/Incentive Process

PROCEDURE FOR GIFT CARDS/INCENTIVE/Certificates/goods GIVEN TO EMPLOYEES, NON-EMPLOYEES AND STUDENTS FOR NON-FINANCIAL AID PURPOSES

NOTE: Only restricted funding types can be used (if allowable from funder), no gifts are allowed from unrestricted general funds.

The procedure to be utilized for gift card/incentive aid purchases and distributions is dependent on one, or both, of  the following considerations:

1. Who is receiving the gift card/incentive aid

2. The purpose for giving the gift card/incentive aid

REQUIRED FORMS

Departments must utilize three forms to track the purchase and distribution of gift cards or incentive aid items.

Each form includes instructions for completion. For audit purposes, the issuing department must retain copies of all forms for three years.

Authorization Form for The Purchase of Gift Cards and/or Incentives

  • Must be submitted and approved before purchasing cards/incentive aid
  • Must be attached to the CalCard reconciliation and/or Requisition (Requisitions, Cal Card Expense Reports, and/or Employee Reimbursements submitted without a copy of a properly completed Authorization Form will be denied and the personal responsibility of the purchaser).

Gift Card/Incentive Recipient Agreement (in English)

Acuerdo de Destinatario de Tarjeta de Regalo/Incentivo (en español)

  • Must be completed by the recipient before receiving a gift card
  • Keep a copy in department office files (for three years), should it be selected in an audit
  • Send copies of all agreements to the appropriate department (see below)

Gift Card/Incentive Disbursement Log

  • Must be completed and submitted before disbursement
  • Send a copy of the log to the appropriate department (see below)

Option 1:

A Student is being given a gift card or incentive aid that is Financial Aid Related:

  • Funds to Purchase: Only a handful of restricted funding types can be used, no gifts/incentives are allowed from unrestricted general funds. The Authorization Form for The Purchase of Gift Cards and/or Incentives must be completed before purchase.
  • Reporting: If the gift cards/incentive aid are provided to students, without any non-academic requirements, to defray their cost of attendance (e.g gas cards, grocery store gift cards, College bookstore gift cards), the gift cards/incentive aid are considered student aid and must be reported to the financial aid department.
  • Reporting Forms Required: Completion of the Gift Card/Incentive Recipient Agreement by the recipient, and the Gift Card/Incentive Disbursement Log by the department need to be submitted to Financial Aid to lcoburn@santarosa.edu.
  • Process:
    • Step 1: Complete the Authorization Form for The Purchase of Gift Cards and/or Incentives
    • Step 2: Create and submit a requisition for purchasing the Gift Cards/Incentive Items.
      • Attach a copy of the signed Authorization Form for The Purchase of Gift Cards and/or Incentives.
      • These agreements are considered Student Aid and should be charged to object code 767X.
    • Step 3: Once a PO number has been assigned, the requisition has been approved and the gift cards/items can now be purchased.
    • Step 4: Student must complete the Gift Card/Incentive Recipient Agreement before receiving the gift card/incentive item. 
    • Step 5: Complete and Submit Reporting Forms Required:
      • These are considered taxable other income by the IRS and recipients may receive a 1098T. 
      • Completion of the Gift Card/Incentive Recipient Agreement by the student and the Gift Card/Incentive Disbursement Log by the department need to be submitted to Financial Aid at lcoburn@santarosa.edu.  

Option 2:

A Student is being given a gift card that is Non-Financial Aid Related:

(If the student is being paid by check for services rendered, please see the Student Compensation website).

  • Funds to Purchase: Only a handful of restricted funding types can be used, no gifts are allowed from unrestricted general funds.
  • Reporting: Gift cards provided to students for a non-financial aid-related purpose (e.g. completing surveys, attending an event, participating in a focus group) are classified as income to the recipient, and are subject to IRS reporting via an IRS Form 1099-MISC if the total combined dollar value received (from District sources) during a calendar year meets or exceeds $600.
  • Reporting Forms Required: Completion of the Gift Card/Incentive Recipient Agreement by the employee and the Gift Card/Incentive Disbursement Log by the department need to be submitted to the Accounting Office to wschultz@santarosa.edu.
  • Process:
    • Step 1: Connect with the Financial Aid Office to determine if the items/gift card qualifies as aid.
    • Step 2: Complete the Authorization Form for The Purchase of Gift Cards and/or Incentives
    • Step 3: Create and submit a requisition
      • Attach a copy of the signed Authorization Form for The Purchase of Gift Cards and/or Incentives.
      • The gift cards should be charged to object code 4390.
    • Step 4: Once a PO number has been assigned, the requisition has been approved and the gift cards can now be purchased.
    • Step 5: Student must complete the Gift Card/Incentive Recipient Agreement prior to receiving the gift card. 
    • Step 6: Complete and Submit Reporting Forms Required:
      • These are considered taxable other income by the IRS and recipients may receive a 1099-MISC form if the annual value received meets or exceeds $600. 
      • Completion of the Gift Card/Incentive Recipient Agreement by the student and the Gift Card/Incentive Disbursement Log by the department need to be submitted to the Accounting Office to wschultz@santarosa.edu.

Option 3:

A Non-Student, Non-employee is being given a gift card/incentive item:

(If the student is being paid by check for services rendered, please see the Student Compensation website).

  • Funds to Purchase: While rare, some funding sources allow this type of purchase to be made.  No gifts are allowed from unrestricted general funds.
  • Reporting: Gift cards provided to Non-Student, Non-employee (e.g. completing surveys, attending an event, participating in a focus group) are classified as income to the recipient, and are subject to IRS reporting via an IRS Form 1099-MISC if the total combined dollar value received (from District sources) during a calendar year meets or exceeds $600.
  • Reporting Forms Required: Completion of the Gift Card/Incentive Recipient Agreement by the employee and the Gift Card/Incentive Disbursement Log by the department need to be submitted to the Accounting Office to wschultz@santarosa.edu.
  • Process:
    • Step 1: Connect with funder/funding source to check if this type of purchase is allowable.
    • Step 2: Complete the Authorization Form for The Purchase of Gift Cards and/or Incentives
    • Step 3: Create and submit a requisition
      • Attach a copy of the signed Authorization Form for The Purchase of Gift Cards and/or Incentives.
      • The gift cards should be charged to object code 4390.
    • Step 4: Once a PO number has been assigned, the requisition has been approved and the gift cards/incentive items can now be purchase.
    • Step 5: Recipient must complete the Gift Card/Incentive Recipient Agreement prior to receiving the gift card.
    • Step 6: Complete and Submit Reporting Forms Required:
      • These are considered taxable other income by the IRS and recipients may receive a 1099-MISC form if the annual value received meets or exceeds $600. 
      • Completion of the Gift Card/Incentive Recipient Agreement by the student and the Gift Card/Incentive Disbursement Log by the department need to be submitted to the Accounting Office to wschultz@santarosa.edu.

frequently asked questions:

  1. Can I purchase gift cards on my SRJC issued Cal Card?

    1. Yes, AFTER the "Authorization Form for The Purchase of Gift Cards and/or Incentives" form is completed and fully approved.  The fully approved form date must be PRIOR to the purchase date on the CalCard statement and should be attached to the CalCard monthly report.   

  2. Can I purchase gift cards with cash or my personal credit card and get reimbursed?

    1. No, gift cards and other items that qualify as aid to students are not eligible for reimbursement.

  3. If I report it as student aid, won’t that limit the amount of aid the student can receive?

    1. It is very rare that a student will max out on their unmet need.  The Financial Aid Office is dedicated to working with each student individually to ensure they can accept as much aid as possible.